reverse auction

A reverse auction is a process where a buyer seeks to purchase goods or services and invites suppliers to bid their lowest prices. Unlike a typical auction where bidders compete to buy, here, sellers compete to offer the lowest price to win the contract. The buyer reviews the bids and selects the most cost-effective option. This method encourages competitive pricing, transparency, and can lead to savings for the buyer, making it a popular approach in procurement and sourcing activities across various industries.